Netflix raises prices as password boost fades

Even without a boost from advertising, Netflix said revenue in the July-September period was up 15% compared with the same period last year, to more than $9.8bn (£7.5bn).

Profit also rose from $1.6bn in the same period last year to $2.3bn.

Netflix last raised prices in the UK and US in 2023 but that only affected certain plans. It has left the price of its popular “standard plan” without adverts untouched since 2022.

In the past, the company has sometimes experimented with pricing in smaller countries before making changes in major markets, such as the US and UK.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Netflix’s strong financial position put the firm in a position to keep spending money to make new hits – the key if it hopes to raise prices without backlash.

“This is inherently a fickle market, with consumers happy to swap streamer if they don’t think they’re getting value,” he said.

“The addition of fresh content is key to that, especially in areas like sporting events, and could give Netflix the edge it needs to push prices higher and keep customers coming back for more.”

One of Netflix’s biggest successes has been Baby Reindeer, a drama created by and starring Scottish comedian Richard Gadd.

The controversial series won four Emmy Awards last month.